March 13, 2012

Changes In Recommended Portfolios
Changes in Recommended Portfolios

by Dr. Renu Pothen - Changes in Recommended Portfolios
’s recommended portfolios has undergone a revamp on March 9, 2012.This is the second time we are rebalancing our portfolios. The strategy behind the portfolio revamp is that it will undergo a change whenever our outlook on equity markets changes or whenever we review our recommended funds list, which happens at the beginning of every calendar year. The current churning in the portfolio was done on account of the review in the recommended funds.

Asset Allocation

Our asset allocation remains the same/inline with the previous year, where we changed our stance on equities from overweight to neutral rating. Our neutral allocation patterns for our recommended portfolios are given below.

Table 1: Current Allocations in the Portfolios

Current Portfolio
  Conservative Moderately Conservative Balanced Moderately Aggressive Aggressive Moderately Aggressive (Global) Aggressive (Global)
Bonds 90% 70% 50% 30% 10% 30% 10%
Equity 10% 30% 50% 70% 90% 45% 60%
Global Equity 0% 0% 0% 0% 0% 25% 30%

Table 2: Portfolio Fund Allocation Changes

    Target Asset Allocation with effect from 9 March 2012
Asset Allocation Fund Name Conservative Moderately Conservative Balanced Moderately Aggressive Aggressive Moderately Aggressive(Global) Aggressive(Global)
Ultra Short Term Funds BNP Paribas Money Plus Fund(G) 20 10 10 - - - -
Short Term Funds Templeton India ST Income(G) 40 20 10 5 - 5 -
Income Funds ICICI Prudential Income Fund(G) 10 10 10 5 - 10 -
Birla SL Dynamic Bond-Ret(G) 10 20 10 10 5 5 5
Gilt Funds ICICI Pru Gilt-Invest(G) 10 10 10 10 5 10 5
Large Cap funds ICICI Pru Focused Blue Chip Equity-Ret(G) 5 10 15 10 10 10 10
Franklin India Bluechip(G) - 10 15 - - - -
Multicap Funds Fidelity Equity(G) - - - 10 10 5 5
UTI Oppor(G) - - - 10 10 10 10
Midcap & Small cap Funds IDFC Sterling Equity Fund(G) - - - 15 20 10 10
HDFC Mid-Cap Oppor(G) - - 10 10 15 5 10
Dividend Yield Funds UTI Dividend Yield(G) 5 10 10 - - - -
Infrastructure Funds ICICI Pru Infrastructure(G) - - - 10 15 5 10
Banking & Financial Funds Reliance Banking(G) - - - 5 10 - 5
Global Funds Franklin Asian Equity(G) - - - - - 10 15
Mirae Asset China Advantage-Reg(G) - - - - - 15 15

changes in category allocation

Fixed Income

We expect the central bank to ease the monetary stance once inflation starts to moderate down. We are of the view that there is uncertainty in the interest rate regime/front because of rising crude prices and on the back of huge fiscal deficit. In the current scenario of volatile interest rates, we have allocated dynamic bond funds in all the seven portfolios as these are actively managed by the fund manager on the basis of interest rate calls. In addition to this, we have exited from the floating rate funds category and have slowly started taking exposure to the long term funds like income and gilt funds.


As far as the equities are concerned, allocation to different categories remains the same. However, the funds in some of the categories have undergone a change as a result of our review of recommended funds. As for the sectoral funds, we continue to maintain our positive stance on infrastructure, banking and pharma.

Changes in Funds included in the Portfolios

Our Recommend Funds have been reviewed and as per the new list, we had to remove some of the existing funds and replace them with new ones.

Table 3: New fund additions and old fund deletions

Changes in scheme 
Category Old New
Short Term Funds Reliance Short Term(G)  -
JM Short Term (G) -
Income Funds - ICICI Pru Income Plan(G)
Large cap Funds HDFC Top 200(G) DSPBR Top 100 Equity-Reg(G)
Mid & Small cap Funds DSPBR Small & Mid Cap-Reg(G) IDFC Sterling Equity(G)
Global Funds Principal Global Opportunities(G) Franklin Asian Equity(G)


The revamped portfolios are effective from March 2012 and our factsheet from March will mirror the revised portfolio.

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